Gold Advances As "Project Freedom" Enters Second Day, Easing Oil Prices

(RTTNews) - Rebounding from yesterday's slump, gold prices have moved higher on Tuesday as "Project Freedom" moves to day number two, reinforcing expectations of smooth oil and energy transit across the Strait of Hormuz, which weighed on oil prices and supported the yellow metal.

Front Month Comex Gold for June month delivery has edged higher by $37.3 (or 0.82%) to $4,570.60 per troy ounce.

Front Month Comex Silver for June month delivery has ticked higher by $0.218 (or 0.30%) to $73.485 per troy ounce.

The war between the U.S. and Iran that began on February 28 led to the closing of the Strait of Hormuz by Iran, triggering supply concerns, and thereby, pushing crude oil and energy prices to elevated levels.

Despite a ceasefire announced by the U.S. on attacks on Iran in order to find a permanent end to hostilities, a peace proposal between both the countries remained elusive. The U.S. wants Iran to give up its nuclear ambitions, a demand that Iran continues to reject.

With the resumption of oil traffic taking much longer than anticipated, major economies were grappling to contain inflation.

U.S. President Donald Trump announced launching "Project Freedom" to ensure safe travel for stranded ships belonging to nations not involved in the war across the Hormuz strait.

U.S. Central Command has deployed guided-missile destroyers, around 100 aircrafts, and nearly 15,000 service personnel to aid this operation.

Iran warned of strong attacks on any foreign force approaching the strait, including the U.S. navy.

The United Arab Emirates announced intercepting Iran's missiles and confirmed that its energy infrastructure in Fujairah oil terminal was attacked by Iran. The news revived concerns of an abrupt end to the U.S.-Iran ceasefire and renewed war-threat.

In an interview with Fox News, Trump warned that Iranian forces would be "blown off the face of the earth" if they indulge in any attack on the U.S. ships.

Though Trump's mission has done only a little to boost the confidence of ship owners, traders received the U.S. assurance with optimism. As a result, crude oil prices eased, leading to an upside movement in gold prices.

The waterway, which facilitates the transit of nearly one-fifth of oil and energy from Arab countries to the rest of the world, with around 120 ships passing through the channel prior to war, remains shut since the war broke out.

Since Project Freedom kicked off, two U.S.-flagged vessels were reportedly escorted out of the strait.

Maersk, Denmark's shipping giant, confirmed that one of its U.S.-flagged vessel was able to exit the strait with all crew members safe.

During a Pentagon meeting, U.S. Defense Secretary Pete Hegseth stressed that the ceasefire already agreed between the U.S. and Iran has not ended.

Hegseth also stated that hundreds of ships were lined up to find a way out of Hormuz and the U.S. military was in touch with them.

Today, the S&P Global Composite Purchasing Managers' Index was revised down to 51.70 in April from a preliminary 52.00, yet still improved from March's 50.30.

The Services PMI rose to 51.00 in April from the three-year low of 49.80 in the previous month, revised slightly downward from the flash estimate of 51.30.

Data from U.S. Bureau of Labor Statistics revealed that the number of job quits rose to 3.171 million in March from the upwardly revised 3.046 million in February.